The Australian Financial Complaints Authority (AFCA) has welcomed the passage of the Scams Prevention Framework Bill 2025, which aims to strengthen protections against financial scams in Australia.
The legislation introduces new requirements for banks, telecommunications companies, and digital platforms to prevent, detect, and respond to scams. It also establishes a framework for liability apportionment across different sectors and creates a unified redress scheme.
“Every day we see the devastating impacts of scams, with people suffering life-changing financial losses, as well as the humiliation of being tricked and the loss of their confidence and sense of security,” said AFCA’s chief ombudsman and chief executive, David Locke. “For too long Australia has been a destination of choice for scammers, and the legislative and regulatory settings have been inadequate.”
The government has indicated plans to designate AFCA as the single external dispute resolution scheme for scams under the new framework.
“AFCA believes this legislation is a significant step forward and we will work with Government, the regulators, industry and consumer groups in the collective effort to make Australia a place of last resort for scammers,” said Locke. “This will create a ‘single door’ for consumers to access redress, by bringing scam complaints to AFCA about digital platforms and telecommunications firms in addition to banks and other financial firms.”
While new industry codes are being developed, Locke urged financial institutions and digital platforms to take immediate action.
“Banks, digital platforms, and telecommunications companies should not wait for the development of the sector codes but should do everything in their power now to protect consumers,” he said.
AFCA noted that, currently, consumers affected by scams should first raise complaints with their financial institutions. If they are dissatisfied with the response, they can seek external resolution through AFCA. Complaints involving telecommunications or digital platform providers should continue to be directed to those companies until the new dispute resolution scheme is in place.
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